Steven Ciobo (Moncrieff, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. Would the Treasurer outline to the House steps the government is taking to benchmark the Australian tax system against international practice?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Moncrieff for his question. I acknowledge his deep interest in this area and his assistance. The Australian government has commissioned Dick Warburton, Chairman of the Board of Taxation, and Mr Peter Hendy, Chief Executive Officer of the Australian Chamber of Commerce and Industry, to lead a study that will benchmark the Australian taxation system against other developed economies.

The benchmarking will look at the overall level of taxes, the tax mix and the base and rates within each type of tax. It will cover personal, business, indirect property and transaction taxes. It will provide a definitive set of facts which will show those areas where Australia meets international practice and those areas where Australia lags behind international practice. Armed with those facts, we will be able to direct our attention to those areas where Australia lags and, in response to that, be able to ensure that the Australian taxation system meets international practice.

All of the areas where Australia wants to be at the forefront of economic practice can take advantage from international benchmarking. That is why it is important that we do this in the taxation area just as we have done it in so many other areas—such as the conduct of monetary policy, fiscal policy, competition policy, debt policy and balance sheet management—to add to the reforms which this government has already put in place—

Lindsay Tanner (Melbourne, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

This is called the Malcolm Turnbull smokescreen.

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

reforms which the member for Melbourne, so voluble in his interjection, opposed. Every single major reform of the Australian economy was opposed by the member for Melbourne, an old socialist leftie who is trying to get back into this argument. He is not old, sorry; I withdraw that.

What is the position of the Australian Labor Party? Blow me down if the Australian Labor Party does not oppose benchmarking the Australian taxation system. Both the Leader of the Opposition and the member for Lilley were out yesterday whingeing and whining, opposing again, trying to hold back reform—as they have every other reform of the Australian economy. Need I remind members of the government that this was the man who promised the Australian public the roll-back of the GST. There is a word we do not hear much around here any more. It is the word that begins with ‘r’. It is the roll-back policy.

Also out there opposing yesterday was the member for Lilley. In the last election it was the member for Lilley who thought up the brilliant campaign of taking $600 off every Australian family. When the then Leader of the Opposition, Mr Latham, discovered the night before the policy release—I read from Mr Latham’s diaries:

The night before the policy release I asked Swan how we deal with the $600 annual payment. He replied, “Just say it’s not real money.”

Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order. We need to have standing orders upheld.

David Hawker (Speaker) Share this | Link to this | Hansard source

The Treasurer will come back to the question.

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

That was the last tax policy which the member for Lilley put forward—to take $600 off each family in Australia. ‘Just tell them it’s not real money.’ Just tell them he’s not a real shadow Treasurer either.